Subsidy for plug-in cars from the UK government with immediate effect

The government has abolished the 1,500-pound plug-in car subsidy (PiCG) with immediate effect, ending an incentive plan for electric cars dating back to 2011.

The government hails “the success of the UK electric car revolution” as the reason for the decision, saying it has helped increase pure electric vehicle sales from 1,000 units in 2011 to nearly 100,000 in just the first five months of the year. 2022. The PiCG has been applied to more than 500,000 electric vehicles since its inception, making a total contribution of more than £ 1.4 billion.

Repeated cuts in the amount of money granted as part of the PiCG have sparked speculation about its demise for several years, and the government’s previous commitment to funding until 2022/2023 suggested that was when it would end.

Car Grant Plug-in: What it means for car buyers and manufacturers

Confirmation of cancellation comes just six months after the amount was reduced from a maximum of £ 2,500 to £ 1,500, and the maximum cost of eligible vehicles was reduced from £ 35,000 to £ 32,000, leaving only most affordable electric vehicles on the market eligible. the PiCG. The government says the number of electric vehicles available below that price is now 24, up from 15 last year as manufacturers introduce cheaper entry-level electric vehicles.

The government said: “The government has always been clear that the plug-in car subsidy was temporary and previously confirmed funding until 2022-23. Successive reductions in the size of the subsidy and the number of models it covers have little effect on rapidly accelerating sales or on the ever-growing range of models.

Because of this, the government is redirecting funding to major barriers to the transition of electric vehicles, including public transportation and support for the purchase of other road vehicles where switching to electric vehicles requires greater development “.

Leave a Comment

Your email address will not be published. Required fields are marked *